worth a look if you own any cattle

[shorthorns r us]

The U.S. Senate Ag Committee stuck its flag in solid socialistic rock two weeks ago by including an amendment to the Livestock Title of the 2007 farm bill that would allow government to tell cattlemen and other livestock producers how to market their product. The measure will now be debated in the full Senate.

The Livestock Title resurrects the notion of banning packer ownership of cattle more than 14 days prior to harvest. Specifically, the measure would make it illegal for packers, "to own or feed livestock directly, through a subsidiary, or through an arrangement that gives the packer operational, managerial or supervisory control over the livestock, or over the farming operation that produces the livestock."

Representatives of the National Cattlemen's Beef Association (NCBA) say the larger impact this could have on the cattle industry is that "it could ban all marketing alliances that we currently participate in.

"Since most of these alliances are partnered with a packer at some point in the process, this could be interpreted as being covered by the ban. The alliances that we participate in, as cattle producers, are led by us and are at the demand of the consumer. We should be rewarded for creating a product that our consumers want, not hindered by it," NCBA says.

In other words, if this legislation is enacted, all bets are off on any arrangement that enables producers to participate in value-added market opportunities that include packer participation, such as branded-beef programs.

One thing often ignored in the emotional rhetoric supporting mandatory-but-equal mediocrity is that folks enjoying higher prices and richer returns via value-based marketing arrangements also often assume more risk than those comfortable with the commodity route. This Senate amendment -- like every other attempt to legislate markets through the years -- seeks to mandate the level of marketing risk producers can assume, yet increases financial risk by limiting marketing latitude. It's a hallmark to illogic.

The full Senate is expected to vote on the farm bill as early as this week. That means you still have time to contact your U.S. Senators to voice your opposition. One easy option is an electronic approach at: http://capwiz.com/beefusa/issues/alert/?alertid=10494476&type=CO

 

[knabe]

it's been pretty clear for a long time that congress does not like the american businessperson.  they will do everything possible to run them out of business.  this is the way to control votes.  if you need the government for everything, why would you vote for anyone who says support yourself.  no question mark included because it's not a question.  i think either 6 or 9 of the hijackers on 9/11 were registered to vote illegally.  even thought the number of illegal voters far exceeds the number of people who may have difficulty providing adequate documentation of their legal status (ie older people for sympathy), the government will do NOTHING to ensure all votes are at LEAST legal.  the american businessperson has little representation in government if any at all.  teach your kids, or it's over.  Not many more votes are necessary to change the US to a communist state.  when that happens, the next goal will be for the states to amend the constitution to codify.  the ratio in CA is essentially there already.  if you look at this site, you can pretty much see who the government cares about.

http://www.sunlightfoundation.com/a_picture_is_worth_a_thousand_words

it's pretty clear farmers don't matter.  the government pays subsidies to big farma so that it's government programs will have predictable cost structures that can be rationalized in spending bills.  that way, they can brag to the voters they are keeping costs under control (communism).  what a total and complete joke.

 

[dori36]

For another look at the issue of packer owned cattle and it's effects on private and smaller producers, check out this url:

http://www.r-calfusa.com/News%20Releases/110207-premium.htm

 

[knabe]

dori,

i'm not sure i understand the second link.  why does one have to sell to the packer so far in advance.  with earlier maturing cattle off of grass, this window will close.  more regulations only reshuffles the deck and the people writing the legislation usually benefits.  if someone sells to a captive supply, well i guess they agree with it.  unless of course there is no choice.  choice, there's that word again.  what's to stop cattle producers from being a packer?  again, i would try and tip the balance for smaller more distributed networks at the expense of consolidation.  if one wants to be a multinational, they should'nt be allowed to offshore their location to the disadvantage of local producers.  take away that to do business in the us and of course they would complain.

 

[dori36]

dori,

i'm not sure i understand the second link.  why does one have to sell to the packer so far in advance.  with earlier maturing cattle off of grass, this window will close.  more regulations only reshuffles the deck and the people writing the legislation usually benefits.  if someone sells to a captive supply, well i guess they agree with it.  unless of course there is no choice.  choice, there's that word again.  what's to stop cattle producers from being a packer?  again, i would try and tip the balance for smaller more distributed networks at the expense of consolidation.  if one wants to be a multinational, they should'nt be allowed to offshore their location to the disadvantage of local producers.  take away that to do business in the us and of course they would complain.

The worry about captive supply is a diminution of available, competing markets for producers who raise  feeder cattle for a living.  Without competition what happens to viable markets?  The few packers just price everything alike.  Think what has happened to the poultry industry.  Verticle integration.  Only one way to sell broilers - Tyson.  No competition - take it or leave it pricing.  I realize that smaller cattle raisers aren't necessarily affected by the fact that there are only a couple of packers left in the country.  But, if you're a commercial producer selling feds by the potload and no one will bid on  your cattle, what's next?  I've personally seen ranchers with small feedlots on the ranch not be able to get the ConAgras  of the world come to bid. If the packers own the cattle from birth todeath, and they are running all the feedlots, where do producers who need to move their fed cattle go?  The packers wouldn't need their cattle as they already would own all the feeders they need.  Between hogs, chickens, and beef, so far only the cattle industry hasn't become totally vertically integrated.

 

[knabe]

thanks dori, starting to understand a little bit.  this was discussed at our local cattlemans association the other night.  since i didn't understand it, i can't remember what they were saying their position was.  i was interested in the water bill which is going to allow, in CA anyways, potentially a fee assessed on the number of acres you own to cover costs to administer regulation of your property to research stuff like sediment runoff, pesticides, E. coli, riparian take, you name it.  basically what they are trying to do is declassify pasture from right to farm legislation.  in the works are buffer zones between row crops and pasture with little compensation for the rancher, even though no science yet has determined cows were the cause of the E. coli contamination in the spinach, or what practices could reduce the risk, including cooperating with the NRCS, local resource conservation districts to make native grass perrenial buffer zones along fence lines to aid infiltration of water as oppossed to runoff.  sorry, getting a little off topic.

it seems even multinationals can't compete with tyson etc, so they just buy the company since it appears there is no room for a smaller nimbler supply chain of lower overhead, perhaps higher quality? beef.  it would seem if one could foster competition, rather than regulate, things would balance out a little.  to me, it seems that 50% of the market is costco walmat types, 15% low quality restaurants, ie burgers, perhaps 10-15% premium restaurants, and the rest local grocers, which tend to not focus on high quality meat by volume, leaving perhaps a total % of the market of <25% higher quality meats (upscale restaurants + higher quality in grocers and custom suppliers).  it would seem that this would be enough piece of the pie that someone could take this over a little bit better with branding.  is anyone doing this?, ie niman ranch style etc?  some folks won't pay the premium for the slowfooders, ie me, but will pay more for more, ie like ranchers reserve at safeway, or grow my own, though that's not an option for the public at large.

custom costs
$100 to slaughter
0.85/lb to cut and wrap, 0.15 extra to shrink wrap.  this means a 950 hot weight is ~800 bucks to wrap.  there has to be some way to find somewhere in between this price point and the packer price point and distribution system.  perhaps across breeds with quality.  harris ranches does something like this.  i think they have about 100,000/yr operation.

 

[dori36]

Just a couple comments:  to your <<it seems even multinationals can't compete with tyson>>, Tyson "is" the multinational!  And yes, there is branded beef.  Certified Angus, Certified Hereford are two examples.  The packers try to play the same game by offering their own "Angus" bands.  Trouble is it isn't handled the same as either the  Certified Angus Beef or Certified Hereford Beef requires so it doesn't taste nearly as good. 

Another issue to try to get around is the amazing amount of meat on the market that is from out of the country.  Probably none of the hamburger you see in places like Sam's, WalMart, or your local grocery store, that is in preformed patties  in large quantities frozen is from the US.  It's low quality, old cattle that are imported in for slaughter. I eat my own and know where it's been but many of my non-farm friends and family don't know the difference when they shop.  I would NEVER buy or eat any of those frozen, boxed patties!  I know I have been told that none of the ecoli recalled burger has been from beef raised here.  Just lots and lots of BIG issues in the beef industry.  I could go on and on and bore the heck out of everyone!!